As a CEO, you want your company to capitalize on the productivity gains offered by generative AI (see: “CEO’s Guide to Generative AI: Proactive Advice for 2024”). A recent study by the National Bureau of Economic Research found that generative AI systems like ChatGPT can increase workforce productivity by an average of 14%, with some companies reporting increases of up to 400%. McKinsey says that generative AI could add up to $4.4 trillion worth of added value annually.
Goldman Sachs research shows that two out of three American jobs are exposed to AI automation. Worldwide, 300 million jobs may be replaced in part or whole by automation, potentially saving trillions of dollars. For example, IBM froze hiring for 7,800 jobs that AI could replace, and British Telecom announced that it would replace 10% of its team with AI before 2030.
But how can you, as an employer, realize these benefits without a multi-year project and massive investment?
Four Key Areas for Immediate AI Disruption
There are at least four business areas where generative AI has already had a dramatic impact:
Customer Operations
AI can increase productivity by up to 45% by understanding customer intent and sentiment and offloading low-level tasks to chatbots powered by generative AI. Some of the players leading the charge here are Qualtrics, Ultimate.ai, and Intercom.
Sales & Marketing
AI can efficiently analyze prospect behavior, create customized content, and personalize efforts. Shortly after ChatGPT went live, Microsoft and Salesforce introduced Viva Sales and Einstein GPT, respectively, which put generative AI to work in sales. Phrasee, Persado, and Albert are just a few of the many solutions that apply generative AI to work in digital marketing.
Software Development
Eighty-eight percent of coders report increased productivity with AI for tasks like code review, documentation, and bug fixes. GitHub Copilot, Tabnine, and Snyk are just a few of the many solutions that have emerged to increase productivity in software development thanks to generative AI.
Research & Development
AI is a game-changer for drug discovery, information analysis, and industrial design. From pharmaceutical research to manufacturing, generative AI is revolutionizing the R&D landscape.
How to Boost Productivity with Generative AI
There are also areas where generative AI can have a dramatic impact on productivity:
Adopt and Adapt Now
Assume competitors are using AI, and your team is experimenting with it. Lean in and decide where, how, and when to implement generative AI to stay competitive. Rapid adoption and adaptation is the name of the game.
Keep a Human in the Loop
Retain “adult supervision” to ensure output meets quality standards and brand image. Whether it’s marketing content, product design, or software code, the output needs human review to ensure accuracy, avoid bias and other ethical issues, and spot problems that only humans can understand.
Engage with Your Team
Communicate expectations, support retraining, and prepare teams to embrace AI as a copilot. Some roles will be eliminated, others will expand, and others will remain unaffected. Let your team know what you expect of them and support them through the transition.
Lead from the Top
You and the board must champion generative AI use and become adept at implementing AI throughout the organization. You don’t need to become an AI expert, but you do need to lead your organization’s internal AI revolution (see: How CEOs Can Overcome Resistance To Change Within Their Organization”).
Navigate the AI Revolution Successfully
The changes driven by generative AI will make the last decade of digital transformation seem quaint. You must stay informed about how AI determines winners and losers, how to leverage it for your organization’s benefit, and how to manage AI risk. If you care about these topics, please contact me, a CEO Coach with extensive knowledge in the use of AI for business. I have years of experience teaching leaders like yourself how to use AI effectively.
My name is Glenn Gow, CEO Coach. I love coaching CEOs and want to help make you an even better CEO. Let’s decide if we are a fit for each other. Schedule a time to talk with me at calendly.com/glenngow. I look forward to speaking with you soon.
